IPS Paraguay explores new investments and property auctions to bolster pension funds

The Instituto de Previsión Social (IPS) in Paraguay is exploring new strategies to strengthen its pension funds and increase coverage longevity. IPS President Derlis León stated that the institution is seeking alternative investment instruments, such as bonds from the Agencia Financiera de Desarrollo (AFD), because current limits on deposits in certain financial entities have been reached.

As part of these financial efforts, the IPS is analyzing the potential public auction of 776 unproductive properties, valued at approximately 1.9 trillion Guaraníes. While León noted that a 2023 legal framework allows for such sales, the move has met resistance from the Unión de Jubilados del IPS. The retirees' union, led by Gustavo Canatta, argues that proceeds from real estate sales must be strictly dedicated to the Pension and Retirement Fund rather than being used to cover deficits in the institution's health services.